What is ground rent?

Ground rent is rent paid under the terms of a lease by the owner of a building to the owner of the land on which it is built. Ground rent is exactly what it sounds like – a sum of money leaseholders pay the freeholder to occupy the land a leasehold property is built upon. Ground rent must only be paid if it’s detailed in the lease. If it isn’t, the landlord won’t be able to recover any ground rent from the leaseholder.
The government has just provided a fairly detailed indication of what steps it is to take to approach to ban ground rents, what it sees,
as unfair practices relating to rents on leasehold property and the sale of leasehold houses.
Ground rents will be restricted to a peppercorn in future leases and new long leases of houses will be banned,
subject to limited exemptions.

read more